Indonesian Shares Tumble Again On Economy, US Fed Concerns

Indonesian shares fell sharply again on Tuesday, to their lowest since March 2012, on continuing worry over the economy and the impact of a cut in U.S. monetary stimulus.

At 0420 GMT, the benchmark index was down 4.9 percent to 4103.4.

On Monday, the index dropped 5.6 percent, its biggest one-day fall in nearly two years.

Asian stocks opened lower on Tuesday, hit by continuing uncertainty over when the U.S. Federal Reserve will start to reduce its stimulus.

Minutes from the central bank’s last policy meeting will be released on Wednesday, and might provide clues on when the Fed plans to taper its monthly $85 billion in asset purchases. Many analysts believe tapering could begin next month.

In Indonesia, the rupiah fell sharply on Monday, hitting its lowest levels in four years. Government bonds also slumped on concerns over the wide current-account deficit in the second quarter for Southeast Asia’s biggest economy.